Term
| Commercial general liability CGL |
|
Definition
liability coverage for your business.
-does not cover personal liability, which is covered on your homeowners policy.
-has no deductible, can be written about any type of business.
-exceptions are auto dealers and repair shops>> garage liability
it's a BI and PD coverage that will pay for your legal liability to others resulting from your failure to act reasonably.
-pay cost of hiring lawyer in addition to your policy limits
-negligent acts of employees is covered as well, injury to own employee is not. > workers comp. |
|
|
Term
|
Definition
| for this form, the claim must be turned in while the policy is still in force. |
|
|
Term
|
Definition
defines when coverage begins for claims made policies
-usually when an occurrence policy is renewed by a claims made policy, this will be the effective date of the claims made policy. this eliminates overlapping coverage |
|
|
Term
| retroactive coverage date |
|
Definition
| when renewing a policy written on a claims made basis, you should maintain the original _ |
|
|
Term
| extended reporting period ERP |
|
Definition
| sometimes also called a 'tail of coverage' |
|
|
Term
|
Definition
| claims that might be turned in after the end of your policy period create an exposure known as a _ |
|
|
Term
|
Definition
simply extends the period for reporting such claims. does not extend policy period. applies only to BI and PD that occurred before the end of the policy period and not before the retroactive date.
-can't be canceled once in effect |
|
|
Term
|
Definition
excludes coverage for earlier occurrences
-erp is opposite, preserves coverage for a given policy period, and maintains it for future claims arising out of that period |
|
|
Term
your cgl policy is canceled or not renewed
your cgl policy is renewed with an advanced retroactive date
your cgl policy is renewed by an occurence form |
|
Definition
| the insurer will provide one or more ERPs if any of the following situations occur: |
|
|
Term
|
Definition
provided automatically without additional premium charge, begins at the end of the policy period and provides an extra 60 day period for reporting any claims that occurred during the policy period.
-allows a claimant to report a claim up to 5 years after the policy period, as long as teh actual notice of pending claim was reported not later than 60 days after the end of the policy period |
|
|
Term
|
Definition
optional, but extends the claim-reporting period indefinitely or provides a full tail of coverage. in order to purchase this the name insured must request it in writing within 60 days after the end of the policy period.
-additional premium may not exceed 200% of the annual CGL premium. |
|
|
Term
|
Definition
| triggers coverage on a CGL that pays claims on an occurrence basis. |
|
|
Term
| date that the claim was turned in |
|
Definition
| on a claims made CGL, it is the _ assuming it is related to something that occurred during the policy period. (that pays claims) |
|
|
Term
|
Definition
| provides BI and PD coverage for premises and operations liability and products and completed operations liability. |
|
|
Term
|
Definition
| provides coverage for BI and PD on your fixed premises in the event someone is injured or property is damaged due to your negligence. The premium is based mainly on the size of your premises and how many square feet of space is open to the public. =also to the parking lot and the sidewalks adjacent to the store. |
|
|
Term
|
Definition
is designed for businesses that do not have a single fixed premises, but various premises instead.
-building contractor.
-subject to audit and payroll verification |
|
|
Term
|
Definition
includes coverage for products and completed operations.
-designed for businesses that either manufacture or sell somehting or build something.
-after it has been released from the control of the manufacturer or retailer
-product itself is not covered. nor cost of recall nor loss of income |
|
|
Term
|
Definition
basis of premium charged for products liability is
-more of a product you sell, higher the premium |
|
|
Term
| completed operations liability |
|
Definition
part of the same CGL insuring agreement, but is designed for businesses that build things. If you build houses, you need coverage to later protect you in the event the roof collapses injuring its occupants.
-covers you after you are done |
|
|
Term
| contractual liability or assumed liability |
|
Definition
also covers your liability assumed under contracts- Coverage A of CGL
-build your factory next to the railroad so you can load goods onto them. you must sign an agreement with the railroad, agreeing that you will assume all liability |
|
|
Term
a contract for a lease of premises,
a sidetrack agreement
any easement or license agreement
an obligation as required by law, to indemnify a municipality
an elevator maintenance agreement |
|
Definition
| insured contracts means any of the following: |
|
|
Term
| general contractors -also a part of coverage A of CGL |
|
Definition
are assumed to be responsible for the acts of any subcontractors they may hire, they need a coverage called 'independent contractors coverage'
if they are sued because of negligent acts of the subcontractor |
|
|
Term
|
Definition
| for a small additional premium, an endorsement called _, may be added to the CGL. without this endorsement, damage to the property in the care, custody or control of the insured is not covered |
|
|
Term
|
Definition
| has the effect of holding down the premium the landlord pays for his fire insurance, since his fire-insurance company knows it may be able to subrogate and collect from the tenant's property damage liability |
|
|
Term
|
Definition
| provides coverage for 'personal and advertising injury liability.' this type of liability coverage does not cover BI or PD but rather the insured's liability for financial damages due to oral or written publication of material that slanders or libels a person or disparages a person's goods, products or services, or oral or written publication of material that violates a person's right of privacy |
|
|
Term
|
Definition
means injury arising out of the following offenses:
misappropriation of advertising ideas or style of doing business
infringement of copyright, title or slogan |
|
|
Term
|
Definition
means injury, other than BI, arising out of one of more of the following offenses:
false arrest, detention, or imprisonment
malicious prosecution
wrongful eviction |
|
|
Term
|
Definition
| a no-fault coverage called medical. this is very similar to med coverage you have on a homeowners policy. the purpose of the coverage is to prevent lawsuits. applies only to others, not to the insured or employees. if the injury took place within the policy period and is reported within one year, the medical coverage applies to necessary medical, surgical, and dental services, including funeral services if death results from the injuries sustained. Coverage applies on a per person basis. |
|
|
Term
|
Definition
| applies to all damages resulting from the same occurrence |
|
|
Term
|
Definition
| are in addition to limits (payments) |
|
|
Term
|
Definition
| claims paid on an occurrence basis will reduce the general (total) amount of insurance available to pay future claims, but it is reinstated in full on the next policy anniversary date. |
|
|
